Surjit Bhalla: Inflation targeting has zero impact on price situation

Surjit Bhalla also said that real interest rate, which is the difference between the nominal interest rate and inflation, is very high in India and not justified for an emerging economy. "Inflation targeting in India has zero impact on inflation. New Zealand started inflation targeting in 1998, and it has not gone anywhere," he said at an event  organised  by Brookings India

Surjit Bhalla: Inflation targeting has zero impact on
Srjit Bhalla said India's CPI inflation is based on 2011 base year, and has a food inflation share which is much higher than what it should be. Image source: Reuters

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